Mumbai, Mar 05: The state-run term lender Industrial Development Bank of India plans to raise up to Rs 1,000 crore through a public issue of bonds, called Flexibonds-21, the company said on Friday. The interest rates on bonds with maturities ranging from three to 15 years, are between 5.50-6.75 percent.

These are steady to 10 basis points lower than the rates IDBI offered in its last issue launched in January.

The latest issue also introduces a 15 year bond with the option of annual interest payment carrying a coupon of 6.75 percent.

The issue will open for subscription on March 9 and close on March 29, IDBI said in a statement. The core issue size is five billion rupees, but IDBI has the option to retain an over-subscription of another Rs 500 crore.

The issue has four options: infrastructure bonds, floating rate bonds, retirement bonds and regular income bonds.

The issue has been rated 'AA+' by CRISIL Ltd, 'AA+ ( ind )' by FITCH and 'LAA' by ICRA Ltd, all of which indicate high safety.

The previous 20 flexibond issues have together raised over Rs 16,000 crore from around five million investors, the statement said. Bureau Report